Bản sao của Chap09

Chapter 9
Application: International Trade

MULTIPLE CHOICE
1
. When goods that are produced in the United States are sold to China, the goods are
a. exported by the United States and imported by China.
b. imported by the United States and exported by China.
c. exported by the United States and exported by China.
d. imported by the United States and imported by China.
2
. When the United States engages in international trade with China,
a. China reaps economic benefits and the United States loses.
b. both China and the United States reap economic benefits.
c. it is an equal tradeoff so neither country benefits nor loses.
d. China loses and the United States reaps economic benefits.
3
. When Ford and General Motors import automobile parts from Mexico at prices below those they
must pay in the United States,
a. workers who assemble Ford and General Motors vehicles become worse off.
b. United States consumers, taken as a group, become worse off.
c. Mexican consumers, taken as a group, become worse off.
d. American companies that manufacture automobile parts become worse off.
4
. Countries usually impose restrictions on free foreign trade to
a. protect foreign producers.
b. protect foreign consumers.
c. protect domestic producers.
d. protect domestic consumers.
1
ANSWER: a. exported by the United States and imported by China.
TYPE: M KEY1: C OBJECTIVE: 1 RANDOM: Y
2
ANSWER: b. both China and the United States reap economic benefits.
3
ANSWER: d. American companies that manufacture automobile parts become worse off.
4
ANSWER: c. protect domestic producers.
TYPE: M KEY1: D SECTION: 1 OBJECTIVE: 1 RANDOM: Y
Harcourt, Inc. items and derived items copyright © 2001 by Harcourt, Inc. 1
2 Chapter 9/Application: International Trade
5
. If a country allows trade and the domestic price of a good is higher than the world price,
a. the country will become an exporter of the good.
b. the country will become an importer of the good.
c. the country will neither export nor import the good.
d. additional information about demand is needed to determine whether the country will export or
import the good.
6
. If a country allows trade and the domestic price of a good is lower than the world price,
a. the country will become an exporter of the good.
b. the country will become an importer of the good.
c. the country will neither export nor import the good.
d. additional information about demand is needed to determine whether the country will export or
import the good.
7
. If the United States exports cars to France, and imports cheese from Switzerland,
a. the United States has a comparative advantage in producing cars, and Switzerland has a
comparative advantage in producing cheese.
b. the United States has a comparative advantage in producing cheese, and Switzerland has a
comparative advantage in producing cars.
c. the United States and France would both be better off if they each produced cars and cheese.
d. comparative advantage cannot be determined without knowing absolute prices.
8
. Trade among nations is ultimately based on
a. absolute advantage.
b. political advantage.
c. comparative advantage.
d. technical advantage.
5
ANSWER: b. the country will become an importer of the good.
TYPE: M KEY1: C SECTION: 1 OBJECTIVE: 1 RANDOM: Y
6
ANSWER: a. the country will become an exporter of the good.
7
ANSWER: a. the United States has a comparative advantage in producing cars, and
Switzerland has a comparative advantage in producing cheese.
8
ANSWER: c. comparative advantage.
Harcourt, Inc. items and derived items copyright © 2001 by Harcourt, Inc.
Chapter 9/Application: International Trade 3
9
. A country has a comparative advantage in a product if
a. the world price is lower than its domestic price.
b. the world price is higher than its domestic price.
c. the world price is equal to its domestic price.
d. none of the above
10
. Trade is beneficial because
a. it creates jobs for middlemen.
b. it creates jobs for shippers.
c. it allows each nation to apply economic pressure on other nations.
d. it allows each nation to specialize in doing what it does best.
11
. Which of the following is NOT a benefit of trade?
a. an increased variety of goods
b. lower costs through economies of scale
c. increased competition
d. an ability to control domestic and world prices
12
. If Brazil has a comparative advantage in producing rubber, and trade in rubber is allowed,
a. Brazil will become an importer of rubber.
b. Brazil will become an exporter of rubber.
c. Brazil could become either an exporter or an importer of rubber.
d. it is impossible to determine whether Brazil will become an importer or an exporter of rubber
without additional information about rubber prices.
13
. When a country allows trade and becomes an exporter of a good,
a. both domestic producers and domestic consumers are better off.
b. domestic producers are better off, and domestic consumers are worse off.
c. domestic producers are worse off, and domestic consumers are better off.
d. both domestic producers and domestic consumers are worse off.
9
ANSWER: b. the world price is higher than its domestic price.
10
ANSWER: d. it allows each nation to specialize in doing what it does best.
11
ANSWER: d. an ability to control domestic and world prices
12
ANSWER: b. Brazil will become an exporter of rubber.
13
ANSWER: b. domestic producers are better off, and domestic consumers are worse off.
14
. When a country allows trade and becomes an importer of a good,
a. both domestic producers and domestic consumers are better off.
b. domestic producers are better off, and domestic consumers are worse off.
c. domestic producers are worse off, and domestic consumers are better off.
d. both domestic producers and domestic consumers are worse off.
15
. When a country allows trade and becomes an importer of a good,
a. everyone in the country benefits.
b. the gains of the winners exceed the losses of the losers.
c. the losses of the losers exceed the gains of the winners.
d. everyone in the country loses.
16
. When a country allows trade and becomes an exporter of a good,
a. everyone in the country benefits.
b. everyone in the country loses.
c. the gains of the winners exceed the losses of the losers.
d. the losses of the losers exceed the gains of the winners.
17
. When a country allows trade and becomes an exporter of a good, which of the following would NOT
be true?
a. The price paid by domestic consumers of the good increases.
b. The price received by domestic producers of the good increases.
c. The losses of domestic consumers exceed the gains of domestic producers.
d. The gains of domestic producers exceed the losses of domestic consumers.
18
. When a country allows trade and becomes an importer of a good, which of the following would NOT
be true?
a. The gains of domestic consumers exceed the losses of domestic producers.
b. The losses of domestic producers exceed the gains of domestic consumers.
c. The price paid by domestic consumers of the good decreases.
d. The price received by domestic producers of the good decreases.
14
ANSWER: c. domestic producers are worse off, and domestic consumers are better off.
15
ANSWER: b. the gains of the winners exceed the losses of the losers.
16
ANSWER: c. the gains of the winners exceed the losses of the losers.
17
ANSWER: c. The losses of domestic consumers exceed the gains of domestic producers.
18
ANSWER: b. The losses of domestic producers exceed the gains of domestic consumers.
19
. When a country allows trade and becomes an exporter of a good
a. consumer surplus and producer surplus will increase.
b. consumer surplus and producer surplus will decrease.
c. consumer surplus will increase and producer surplus will decrease.
d. consumer surplus will decrease and producer surplus will increase.
20
. When a country allows trade and becomes an importer of a good
a. consumer surplus and producer surplus will increase.
b. consumer surplus and producer surplus will decrease.
c. consumer surplus will increase and producer surplus will decrease.
d. consumer surplus will decrease and producer surplus will increase.
21
. When a country allows free trade,
a. the domestic price will be greater than the world price.
b. the domestic price will be lower than the world price.
c. the domestic price will equal the world price.
d. it does not matter what the world price is, the domestic price is the prevailing price.
The before-trade domestic price of pineapple in the United States is $500 per ton. The world price of
pineapple is $600 per ton. The U.S. is a price-taker in the pineapple market.
22
. If trade in pineapple is allowed,
a. the U.S. will become an importer of pineapple.
b. the U.S. will become an exporter of pineapple.
c. the U.S. may become either an importer or an exporter of pineapple.
d. it is impossible to determine whether the U.S. will become an importer of pineapple or an
exporter of pineapple.
19
ANSWER: d. consumer surplus will decrease and producer surplus will increase.
20
ANSWER: c. consumer surplus will increase and producer surplus will decrease.
21
ANSWER: c. the domestic price will equal the world price.
22
ANSWER: b. the U.S. will become an exporter of pineapple.
TYPE: M KEY1: T SECTION: 2 OBJECTIVE: 2 INSTRUCTION: 4 RANDOM: Y
23
a. the price of pineapple in the U.S. will increase.
b. the price of pineapple in the U.S. will decrease.
c. the price of pineapple in the U.S. will be unaffected.
d. the price of pineapple in the U.S. could increase or decrease.
24
a. the price of pineapple in the U.S. will be greater than the world price.
b. the price of pineapple in the U.S. will be equal to the world price.
c. the price of pineapple in the U.S. will be less than the world price.
d. the price of pineapple in the U.S. would be greater than, equal to, or less than the world price.
23
ANSWER: a. the price of pineapple in the U.S. will increase.
24
ANSWER: b. the price of pineapple in the U.S. will be equal to the world price.
25
a. U.S. consumers of pineapple will be better off.
b. U.S. consumers of pineapple will be worse off.
c. U.S. consumers of pineapple will be unaffected.
d. U.S. consumers of pineapple could be helped or hurt.
26
a. total well-being in the U.S. will increase.
b. total well-being in the U.S. will decrease.
c. total well-being in the U.S. will be unaffected.
d. total well-being in the U.S. could increase or decrease.
27
. According to the graph, if trade in beef is allowed,
a. Japan will become an importer of beef.
b. Japan will become an exporter of beef.
c. Japan could become either an importer of beef or an exporter of beef.
d. Japan will neither import nor export beef.
25
ANSWER: b. U.S. consumers of pineapple will be worse off.
26
ANSWER: a. total well-being in the U.S. will increase.
27
ANSWER: a. Japan will become an importer of beef.
TYPE: M KEY1: T SECTION: 2 OBJECTIVE: 2 INSTRUCTION: 5 QUESTION GRAPH: RANDOM: Y
28
a. the price of beef in Japan will be $5 per pound.
b. the price of beef in Japan will be $2 per pound.
c. the price of beef in Japan will be between $2 per pound and $5 per pound.
d. the price of beef in Japan will be higher than $5 per pound.
29
a. Japanese beef consumers and Japanese beef producers will gain.
b. Japanese beef consumers and Japanese beef producers will lose.
c. Japanese beef consumers will gain, and Japanese beef producers will lose.
d. Japanese beef producers will gain, and Japanese beef consumers will lose.
30
a. Japanese consumer surplus will increase and producer surplus will decrease.
b. Japanese consumer surplus will decrease and producer surplus will increase.
c. Japanese producer surplus and consumer surplus will increase.
d. Japanese producer surplus and consumer surplus will be unaffected.
The before-trade price of cotton in Egypt is $200 per ton. The world price of cotton is $300 per ton. Egypt
is a price-taker in the cotton market.
31
. If trade in cotton is allowed
a. Egypt will become an importer of cotton and the price of cotton in Egypt will be $200.
b. Egypt will become an importer of cotton and the price of cotton in Egypt will be $300.
c. Egypt will become an exporter of cotton and the price of cotton in Egypt will be $200.
d. Egypt will become an exporter of cotton and the price of cotton in Egypt will be $300.
32
. If Egypt allows trade in cotton
a. consumers of cotton will be worse off and producers of cotton will be better off.
b. consumers of cotton will be better off and producers of cotton will be better off.
c. consumers of cotton will be worse off and producers of cotton will be worse off.
d. consumers of cotton will be worse off and producers of cotton will be unaffected.
28
ANSWER: b. the price of beef in Japan will be $2 per pound.
29
ANSWER: c. Japanese beef consumers will gain, and Japanese beef producers will lose.
30
ANSWER: a. Japanese consumer surplus will increase and producer surplus will decrease.
31
ANSWER: d. Egypt will become an exporter of cotton and the price of cotton in Egypt will be
$300.
TYPE: M KEY1: E SECTION: 2 OBJECTIVE: 3 INSTRUCTION: 6 RANDOM: N
32
ANSWER: a. consumers of cotton will be worse off and producers of cotton will be better off.
33
. According to the graph, the equilibrium price and the equilibrium quantity of saddles in Argentina
before trade would be
a. P1, Q2.
b. P1, Q1.
c. P0, Q0.
d. P0, Q1.
34
. According to the graph, the price and quantity demanded of saddles in Argentina after trade would
be
a. P1, Q2.
b. P1, Q1.
c. P0, Q0.
d. P0, Q1.
35
. According to the graph, the quantity of saddles exported from Argentina is
a. Qo minus Q1.
b. Q2 minus Q1.
c. Q2 minus Q0.
d. Q0.
33
ANSWER: c. P0, Q0.
TYPE: M KEY1: G SECTION: 2 OBJECTIVE: 3 GRAPH FORMAT: M QUESTION GRAPH:
INSTRUCTION: 8 RANDOM: Y
34
ANSWER: b. P1, Q1.
35
ANSWER: b. Q2 minus Q1.

36
. According to the graph, consumer surplus in Argentina before trade is
a. A.
b. A + B.
c. A + B + D.
d. C.
37
. According to the graph, consumer surplus in Argentina after trade is
a. A.
b. A + B.
c. A + B + D.
d. C.
ANSWER: a. A.
36
ANSWER: b. A + B.
37
ANSWER: a. A.
38
. According to the graph, producer surplus in Argentina before trade is
a. A.
b. A + B.
c. C + B + D.
d. C.
39
. According to the graph, producer surplus in Argentina after trade is
a. A.
b. A + B.
c. C + B + D.
d. C.
40
. According to the graph, total surplus in Argentina before trade is
a. A + B.
b. A + B + C.
c. A + B + C + D.
d. B + C + D.
41
. According to the graph, total surplus in Argentina after trade is
a. A + B.
b. A + B + C.
c. A + B + C + D.
d. B + C + D.
42
. According to the graph, the change in total surplus in Argentina because of trade is
a. A.
b. B.
c. C.
d. D.
38
ANSWER: d. C.
39
ANSWER: c. C + B + D.
40
ANSWER: b. A + B + C.
41
ANSWER: c. A + B + C + D.
42
ANSWER: d. D.
43
. According to the graph, the price and quantity of oil in Spain before trade would be
a. P0, Q0.
b. P1, Q1.
c. P1, Q2.
d. P1, Q0.
44
. According to the graph, the price of oil and the quantity demanded in Spain after trade would be
a. P1, Q1.
b. P1, Q2.
c. P1, Q0.
d. P0, Q0.
43
ANSWER: a. P0, Q0.
INSTRUCTION: 1 RANDOM: N
44
ANSWER: b. P1, Q2.
45
. According to the graph, the quantity of oil imported into Spain is
a. Q0.
b. Q1.
c. Q2.
d. Q2 minus Q1.
46
. According to the graph, consumer surplus in Spain before trade would be
a. A.
b. B + C.
c. A + B + D.
d. C.
47
. According to the graph, consumer surplus in Spain after trade would be
a. A.
b. C + B.
c. A + B + D
d. B + C + D.
45
ANSWER: d. Q2 minus Q1.
46
ANSWER: a. A.
47
ANSWER: c. A + B + D.
48
. According to the graph, producer surplus in Spain before trade would be
a. C.
b. B + C.
c. A + B + D.
d. B + C + D.
49
. According to the graph, producer surplus in Spain after trade would be
a. C.
b. C + B.
c. A + B + D.
d. B + C + D.
50
. According to the graph, producer surplus plus consumer surplus in Spain before trade is
a. A + B.
b. A + B + C.
c. A + B + C + D.
d. B + C + D.
51
. According to the graph, producer surplus plus consumer surplus in Spain after trade is
a. A + B.
b. A + B + C.
c. A + B + C + D.
d. B + C + D.
48
ANSWER: b. B + C.
49
ANSWER: a. C.
50
ANSWER: b. A + B + C.
51
ANSWER: c. A + B + C + D.
52
. According to the graph, the change in total surplus in Spain because of trade is
a. A.
b. B.
c. C.
d. D.
52
ANSWER: d. D.
53
. According to the graph, equilibrium price and quantity before trade would be
a. $19, 400.
b. $19, 800.
c. $15, 400.
d. $15, 600.
54
. According to the graph, the price and quantity demanded after trade would be
a. $19, 400.
b. $19, 800.
c. $15, 400.
d. $15, 600.
55
. According to the graph, domestic production and domestic consumption after trade would be
a. 600, 400.
b. 800, 400.
c. 400, 600.
d. 400, 800.
56
. According to the graph, consumer surplus before trade would be
a. $1600.
b. $2400.
c. $3200.
d. $3600.
57
. According to the graph, consumer surplus after trade would be
a. $1600.
b. $2400.
c. $3200.
d. $3600.
53
ANSWER: d. $15, 600.
54
ANSWER: a. $19, 400.
55
ANSWER: b. 800, 400.
56
ANSWER: d. $3600.
57
ANSWER: a. $1600.
58
. According to the graph, producer surplus before trade would be
a. $3600.
b. $4400.
c. $5200.
d. $6600.
59
. According to the graph, producer surplus after trade would be
a. $4800.
b. $5600.
c. $6400.
d. $7000.
60
. According to the graph, how many units of this product would be exported after trade is allowed?
a. 200
b. 400
c. 600
d. 800
58
ANSWER: a. $3600.
59
ANSWER: c. $6400.
60
ANSWER: b. 400
61
. According to the graph, equilibrium price and quantity before trade would be
a. $19, 400.
b. $19, 800.
c. $15, 400.
d. $15, 600.
62
. According to the graph, the price and quantity demanded after trade would be
a. $9, 300.
b. $9, 900.
c. $15, 400.
d. $15, 600.
61
ANSWER: d. $15, 600.
62
ANSWER: b. $9, 900.
63
. According to the graph, domestic production and domestic consumption after trade would be
a. 600, 600.
b. 600, 300.
c. 300, 900.
64
. According to the graph, consumer surplus before trade would be
a. $1600.
b. $2400.
c. $3200.
d. $3600.
65
. According to the graph, consumer surplus after trade would be
a. $3600.
b. $5400.
c. $7200.
d. $8100.
66
. According to the graph, producer surplus before trade would be
a. $3600.
b. $4400.
c. $5200.
d. $6600.
63
ANSWER: c. 300, 900.
64
ANSWER: d. $3600.
65
ANSWER: d. $8100.
66
ANSWER: a. $3600.
67
. According to the graph, producer surplus after trade would be
a. $ 900.
b. $1100.
c. $1500.
d. $2000.
68
. According to the graph, how many units of this product would be imported after trade?
a. 200
b. 400
c. 600
d. 800
69
. A tariff on a product
a. makes domestic sellers better off and domestic buyers worse off.
b. makes domestic sellers worse off and domestic buyers worse off.
c. makes domestic sellers better off and domestic buyers better off.
d. makes domestic sellers worse off and domestic buyers better off.
70
. A tariff is
a. a tax on imported goods.
b. a tax on exported goods.
c. a limit on imported goods.
d. a tax on luxuries.
71
. A tariff
a. lowers the price of the exported good below the world price.
b. keeps the price of the exported good the same as the world price.
c. raises the price of the imported good above the world price.
d. lowers the price of the imported good below the world price.
67
ANSWER: a. $900.
68
ANSWER: c. 600
69
ANSWER: a. makes domestic sellers better off and domestic buyers worse off.
70
ANSWER: a. a tax on imported goods.
71
ANSWER: c. raises the price of the imported good above the world price.
The U.S. is an importer of down pillows. The world price of these pillows is $25. The U.S. imposes a $10
tariff on pillows. The U.S. is a price-taker in the pillow market.
72
. As a result of the tariff
a. the U.S. price of pillows will be $25 and the quantity of pillows purchased will decrease.
b. the U.S. price of pillows will be $35 and the quantity of pillows purchased will decrease.
c. the U.S. price of pillows will be $25 and the quantity of pillows purchased will increase.
d. the U.S. price of pillows will be $35 and the quantity of pillows purchased will increase.
73
. As a result of the tariff
a. U.S. consumers of pillows will gain and U.S. producers of pillows will lose.
b. U.S. consumers of pillows will lose and U.S. producers of pillows will gain.
c. U.S. consumers of pillows will gain and U.S. producers of pillows will gain.
d. U.S. consumers of pillows will lose and U.S. producers of pillows will lose.
72
ANSWER: b. the U.S. price of pillows will be $35 and the quantity of pillows purchased will
decrease.
73
ANSWER: b. U.S. consumers of pillows will lose and U.S. producers of pillows will gain.
74
. In the figure shown, the free-trade price and quantity demanded would be
a. P1, Q1.
b. P1, Q4.
c. P2, Q2.
d. P2, Q3.
75
. In the figure shown, the domestic price and quantity demanded after the tariff would be
a. P1, Q1.
b. P1, Q4.
c. P2, Q2.
d. P2, Q3.
76
. In the figure shown, consumer surplus with free trade would be
a. A.
b. A + B.
c. A + C + G.
d. A + B + C + D + E + F.
77
. In the figure shown, producer surplus with free trade would be
a. G.
b. C + G.
c. A + C + G.
d. A + B + C + G.
74
ANSWER: b. P1, Q4.
TYPE: M KEY1: G SECTION: 2 OBJECTIVE: 4 GRAPH FORMAT: M QUESTION GRAPH: RANDOM:
Y
75
ANSWER: d. P2, Q3.
Y
76
ANSWER: d. A + B + C + D + E + F.
Y
77
ANSWER: a. G.
Y
78
. In the figure shown, consumer surplus after the tariff would be
a. A.
b. A + B.
c. A + C + G.
d. A + B + C + D +E + F.
79
. In the figure shown, producer surplus after the tariff would be
a. G.
b. C + G.
c. A + C + G.
d. A + B + C + G.
80
. In the figure shown, as a result of the tariff, government tariff revenue would be
a. E.
b. B.
c. D + F.
d. B + D + E + F.
81
. In the figure shown, as a result of the tariff, deadweight loss would be
a. E.
b. B.
c. D + F.
d. B + D + E + F.
82
. A quota is
a. a tax placed on imports.
b. a limit on the quantity of imports.
c. a tax on exports to other countries.
d. an excess of exports over imports.
78
ANSWER: b. A + B.
Y
79
ANSWER: b. C + G.
Y
80
ANSWER: a. E.
RANDOM: Y
81
ANSWER: c. D + F.
Y
82
ANSWER: b. a limit on the quantity of imports.
83
. When a quota is imposed on a market
a. the supply curve (above the world price) shifts to the right by the amount of the quota.
b. the supply curve (above the world price) shifts to the left by the amount of the quota.
c. the demand curve (above the world price) shifts to the right by the amount of the quota.
d. the demand curve (above the world price) shifts to the left by the amount of the quota.
84
. A tariff and an import quota will both
a. increase the quantity of imports and raise domestic price.
b. increase the quantity of imports and lower domestic price.
c. reduce the quantity of imports and raise domestic price.
d. reduce the quantity of imports and lower domestic price.
85
. In the figure shown, the free-trade price and quantity demanded would be
a. P1, Q1.
b. P1, Q4.
c. P2, Q2.
d. P2, Q3.
83
ANSWER: a. the supply curve (above the world price) shifts to the right by the amount of the
quota.
84
ANSWER: c. reduce the quantity of imports and raise domestic price.
85
ANSWER: b. P1, Q4.
Y
a. P1, Q1.
b. P1, Q4.
c. P2, Q2.
d. P2, Q3.
86
. In the figure shown, after the quota, imports would be equal to
a. Q4 minus Q1.
b. Q3 minus Q2.
c. Q3 minus Q1.
d. Q2 minus Q1.
87
. In the figure shown, after the quota, deadweight loss would be equal to
a. E.
b. B.
c. D + F.
d. B + D + E + F.
88
. In the figure shown, area E represents
a. a part of consumer surplus.
b. a part of producer surplus.
c. a surplus for import license holders.
d. government revenue.
89
. The major difference between tariffs and import quotas is that
a. tariffs create deadweight losses, but import quotas do not.
b. tariffs help domestic consumers, and import quotas help domestic producers.
c. tariffs raise revenue for the government, but import quotas create a surplus for import license
holders.
d. All of the above are correct.
86
ANSWER: b. Q3 minus Q2.
RANDOM: Y
87
ANSWER: c. D + F.
Y
88
ANSWER: c. a surplus for import license holders.
Y
89
ANSWER: c. tariffs raise revenue for the government, but import quotas create a surplus for
import license holders.
90
. Which of the following is an argument for restricting trade?
a. Trade restrictions make all Americans better off.
b. Trade restrictions increase economic efficiency.
c. Trade restrictions are necessary for economic growth.
d. Trade restrictions are necessary for national security.
91
. Which of the following is NOT an argument for restricting trade?
a. the jobs argument
b. the national security argument
c. the infant-industry argument
d. the efficiency argument
ANSWER: d. the efficiency argument
92
. Workers displaced by trade will eventually find jobs in
a. another country.
b. the government sector.
c. the industries in which the country has a comparative advantage.
d. a different company in the same industry.
93
. The infant-industry argument
a. is based on the belief that protecting industries when they are young will pay off later.
b. is based on the belief that protecting industries producing goods and services for infants is
necessary if a country is to have healthy children.
c. has the support of most economists.
d. has proven to be correct in nearly all cases.
94
. Which of the following is the most accurate statement?
a. Protection is necessary in order for young industries to grow up and be successful.
b. Protection is not necessary for an industry to grow.
c. Protection is necessary because if young industries are not protected, they may suffer losses.
d. Protection may not always be necessary for infant industries, but it has proven to be useful in
most cases.
90
ANSWER: d. Trade restrictions are necessary for national security.
91
ANSWER: d. the efficiency argument
92
ANSWER: c. the industries in which the country has a comparative advantage.
93
ANSWER: a. is based on the belief that protecting industries when they are young will pay off
later.
94
ANSWER: b. Protection is not necessary for an industry to grow.
95
. If the Japanese steel industry subsidizes the steel which it sells to the U.S.,
a. the U.S. should protect its domestic steel industry from this unfair competition.
b. the harm done to U.S. steel producers from this unfair competition exceeds the gain to U.S.
consumers of cheap Japanese steel.
c. the harm done to U.S. steel producers is less than the benefit to U.S. consumers of steel.
d. the U.S. should subsidize the products it sells to Japan.
96
. If the U.S. threatens to impose a tariff on German cars if Germany does not remove agricultural
subsidies,
a. the U.S. will be better off no matter how Germany responds.
b. the U.S. will be better off if Germany gives in, and will be no worse off if it doesn't.
c. the U.S. will be worse off if Germany doesn’t give in to the threat.
d. the U.S. will be worse off no matter how Germany responds.
97
. Which of the following is NOT true about the multilateral approach to free trade?
a. The multilateral approach has the potential to result in freer trade than does the unilateral
approach.
b. The multilateral approach may have a political advantage over the unilateral approach.
c. The multilateral approach is simpler than the unilateral approach.
d. NAFTA and GATT are both multilateral approaches to free trade.
98
. Russia has threatened to impose trade barriers on its imports of U.S.
a. tractors.
b. computers.
c. chickens.
d. beef.
95
ANSWER: c. the harm done to U.S. steel producers is less than the benefit to U.S. consumers of
steel.
96
ANSWER: c. the U.S. will be worse off if Germany doesn’t give in to the threat.
97
ANSWER: c. The multilateral approach is simpler than the unilateral approach.
98
ANSWER: c. chickens.
99
. Since World War II, GATT has been responsible for reducing the average tariff among member
countries from
a. about 40 percent to about 5 percent.
b. about 40 percent to about 20 percent.
c. about 80 percent to about 20 percent.
d. about 20 percent to about 10 percent.
100
. The North American Free Trade Agreement
a. increased trade restrictions among Canada, Mexico and the U.S.
b. eliminated tariffs on imports to North America from the rest of the world.
c. reduced trade restrictions among Canada, Mexico and the U.S.
d. none of the above
101
. Economists and the public
a. often disagree about free trade.
b. always agree about free trade.
c. always disagree about free trade.
d. seldom disagree about free trade.
99
ANSWER: a. about 40 percent to about 5 percent.
100
ANSWER: c. reduced trade restrictions among Canada, Mexico and the U.S.
101
a

Bản sao của Chap09

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Bản sao của Chap09

Uploaded by

Copyright:

Available Formats

Chapter 9

Application: International Trade

TYPE: M KEY1: G SECTION: 2 OBJECTIVE: 3 GRAPH FORMAT: M QUESTION GRAPH:

You might also like